NEW YORK LIQUIDATION BUREAU - NYLB · The New York Liquidation Bureau serves as the staff of the Superintendent in her capacities as Receiver and Administrator under New York Insurance

New York Liquidation Bureau

2018 Annual Report

Issued April 30, 2019

Table of Contents Background ................................................................................................................................. 1 - 17

Financial Overview Domestic Receivership

Notes to Financial Overview ............................................................................................................................... 18

American Medical and Life Insurance Company ................................................................................................. 19

Atlantic Mutual Insurance Company .................................................................................................................. 23

Centennial Insurance Company .......................................................................................................................... 27

Cuatro, LLC ......................................................................................................................................................... 31

Eveready Insurance Company ............................................................................................................................. 35

Executive Life Insurance Company of New York ................................................................................................. 39

Fiduciary Insurance Company of America ........................................................................................................... 43

First Central Insurance Company ........................................................................................................................ 47

Frontier Insurance Company .............................................................................................................................. 51

Group Council Mutual Insurance Company ........................................................................................................ 55

Health Republic Insurance of New York, Corp. ................................................................................................... 59

Ideal Mutual Insurance Company ....................................................................................................................... 63

Midland Insurance Company .............................................................................................................................. 67

Professional Liability Insurance Company of America ......................................................................................... 71

Realm National Insurance Company ................................................................................................................... 75

The Insurance Corporation of New York ............................................................................................................. 79

Touchstone Health HMO, Inc. ............................................................................................................................. 83

Union Indemnity Insurance Company ................................................................................................................. 87

Financial Overview Ancillary Receiverships

Ancillary Receiverships ....................................................................................................................................... 91

American Manufacturers Mutual Insurance Company ....................................................................................... 92

American Motorists Insurance Company ............................................................................................................ 93

CastlePoint National Insurance Company ........................................................................................................... 94

Eagle Insurance Company ................................................................................................................................... 95

Guarantee Insurance Company .......................................................................................................................... 96

Lincoln General Insurance Company ................................................................................................................... 97

Lumbermens Mutual Casualty Insurance Company ............................................................................................ 98

Reliance Insurance Company .............................................................................................................................. 99

The Home Insurance Company ......................................................................................................................... 100

Ullico Casualty Company .................................................................................................................................. 101

1

Background

Who We Are

The New York Liquidation Bureau functions as the staff of the Superintendent of Financial Services of the State of New York (“Superintendent”) in her capacity as court-appointed receiver (“Receiver”) under New York Insurance Law Article 74 and as administrator (“Administrator”) of the Property/Casualty Insurance Security Fund (“P/C Fund”), Public Motor Vehicle Liability Fund (“PMV Fund”) and Workers’ Compensation Fund (“WC Fund”) (collectively, the “Security Funds”) under Article 76 of the Insurance Law and Article 6-A of the New York Workers Compensation Law.

1. The Superintendent as Receiver

Article 74 of the Insurance Law authorizes the Superintendent to apply to the Supreme Court of the State of New York (“Court”) to place impaired or insolvent insurance companies into receivership for the protection of policyholders and other creditors. Fraternal benefit societies are also subject to receivership under Article 74. Receivership orders may take the form of a liquidation order under Insurance Law Section 7405 directing the Receiver to marshal and distribute the insurer’s assets for the benefit of its creditors or a rehabilitation order under Insurance Law Section 7403 directing the Receiver to remove the causes and conditions that made the receivership necessary. In either case, the order requires the Receiver to take possession of the insurer’s property and manage its affairs subject to the supervision of the Court. All current domestic receiverships under management are liquidations.

Open Receiverships at Year End (2009 - 2018)

34

39 4038

29

2220

1817

18

23 2220 21 22

18

13 13

10 10

0

10

20

30

40

50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Domestics

Ancillaries

2

The Receiver’s function is to manage the property and affairs of insurance companies in receivership. Our primary duties include collecting and monetizing the insurer’s assets, resolving and paying its claims, and representing the Receiver in dealings with the Court. At year-end 2018, the Receiver managed 18 domestic insurance companies and 10 ancillary receiverships for insurance companies in liquidation in other states. Ancillary receiverships are opened to allow for eligible claim payments from the Security Funds. The combined number of receiverships (including domestic and ancillary estates) managed by the Superintendent has decreased in recent years from a high of 61 in 2010 to a low of 27 in 2017. The assets of domestic receiverships in liquidation managed by the Receiver totaled approximately $719.8 million at the end of 2018. This is down from an historic high of $982.8 million in 2009. As shown in the following chart, the total assets under management has generally tracked the number of domestic estates in liquidation.

Assets Under Management for Domestic Estates in Liquidation at Year-End (2009 - 2018)

34

39 4038

29

2220

18 17 18

$982.8

$896.0

$842.5

$842.7

$750.2

$741.8

$677.7

$675.0

$711.0

$719.8

$0

$200

$400

$600

$800

$1,000

$1,200

0

10

20

30

40

50

60

70

80

90

100

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

Number of Domestic Estates Assets Under Management ($ Millions)

3

2. The Superintendent as Administrator of the Security Funds

The Superintendent also serves as Administrator of the Security Funds in coordination with the Commissioner of Taxation and Finance who serves as the custodian of the funds. The Security Funds are designed to pay eligible claims that remain unpaid by reason of an insolvent insurer’s inability to meet its obligations to policyholders. Our role is to assist the Administrator in resolving and paying claims eligible for Security Fund coverage.

3. Our Organizational Structure and Values

The New York Liquidation Bureau serves as the staff of the Superintendent in her capacities as Receiver and Administrator under New York Insurance Law Articles 74 and 76 and Workers’ Compensation Law Article 6-A. We report directly to the Superintendent and are organized according to the following structure:

As staff to the Receiver and Administrator, we strive to manage assets and resolve claims in a professional, independent, and timely manner in order to protect the interests of New York insureds, claimants and other creditors of estates in receivership.

4

Performance

Closed 3,423 claims, representing an increase of 17 percent over 2017.

Paid a combined $191 million to creditors and Security Fund claimants driven primarily by a 70% increase in Security Fund payments.

Opened three new receivership estates: Cuatro, LLC., Touchstone Health HMO, Inc., and Guarantee Insurance Company, consisting of workers’ compensation and health provider claims.

Completed issuance of 190,367 explanations of benefits (“EOBs”) in Health Republic Insurance of New York, Corp. and resolved 1,457 appeals.

Generated a 2.29% book yield on managed assets.

Expense Reduction

Reduced leased office space by over 60%, resulting in estimated savings of $16 million over seven years.

Eliminated dedicated warehouse and vehicle, eliminating annual carrying costs.

Sold 144,000 square foot Frontier Insurance Company headquarters in Rock Hill, New York, for $3.6 million.

Recovery/Sale of Assets

Collected approximately $15.4 million from reinsurers and state special deposits.

Completed sale of portfolio transfer of claim obligations for Atlantic Mutual Insurance Company Limited for $2.2 million.

Settled surety bond salvage action in Atlantic Mutual Insurance Company for $1.5 million.

Negotiated settlements of Security Fund balances with domestic receivers in other states for approximately $237 million.

Structural/Operations Enhancements

Completed transition of network operations to IBM Cloud and upgraded computer systems to virtual desktop infrastructure.

Launched automated document storage/retrieval system.

Upgraded cyber-security and network protections.

2018 Highlighted Accomplishments

5

A AAAAAA Review of 2018

As of December 31, 2018, there were 18 domestic receiverships in liquidation, 10 ancillary

receiverships, and no receiverships in rehabilitation. Below is a chart of our open domestic

receiverships.

Open Domestic Receiverships – Year End 2018

American Medical and Life Insurance Company 2016 1,687,062

Atlantic Mutual Insurance Company 2011 76,591,047

Centennial Insurance Company 2011 39,134,817

Cuatro, LLC 2018 3,004,307

Eveready Insurance Company 2015 531,254

Executive Life Insurance Company of New York 2013 19,473,023

Fiduciary Insurance Company 2017 34,374,500

First Central Insurance Company 1998 2,123,401

Frontier Insurance Company 2012 32,673,020

Group Council Mutual Insurance Company 2002 1,548,800

Health Republic Insurance of New York, Corporation 2016 37,031,990

Ideal Mutual Insurance Company 1985 47,989,196

Insurance Corporation of New York 2010 15,119,935

Midland Insurance Company 1986 362,591,789

Professional Liability Insurance Company of America 2014 15,627,334

Realm National Insurance Company 2005 544,919

Touchstone Health HMO, Inc. 2018 6,695,866

Union Indemnity Insurance Company of New York 1985 22,376,992

ASSETS UNDER MANAGEMENT RECEIVERSHIP DATE OPENED (In dollars)

6

Closing receiverships in a timely and efficient manner is one of our chief priorities. In 2018, we

closed one domestic receivership and one ancillary receivership.

Closed Domestic and Ancillary Receiverships – Year End 2018

Drivers Insurance Company Domestic 2015

Legion Insurance Company Ancillary 2003

Two additional estates scheduled to close in 2018 were closed in early 2019.

Realm National Insurance Company Domestic 2005

Guarantee Insurance Company Ancillary 2018

1. New Estates

Two new domestic liquidations and one ancillary receivership were opened in 2018.

Domestic Estates:

Cuatro, LLC, was placed into liquidation by order of the Supreme Court of the State of New

York, dated August 6, 2018. Cuatro was incorporated in New York on or about March 23,

2009, and obtained a certificate of authority, effective May 4, 2010, from the New York State

Department of Health to operate as a “Medicare Only” health maintenance organization in

the Bronx, New York and Queens counties. Cuatro provided Medicare Advantage Part D

prescription drug coverage to Medicare beneficiaries through a network of hospitals and

healthcare providers pursuant to Article 44 of the New York Public Health Law. At intake,

Cuatro had claims comprising 26,000 individual medical treatments.

Type of Name Receivership Date Opened

Type of Name Receivership Date Opened

7

Domestic Estates: (continued)

Touchstone Health HMO, Inc., (“Touchstone”) was placed into liquidation by order of the

Supreme Court of the State of New York, dated May, 11, 2018. Touchstone was incorporated

in New York on or about May 30, 2006. The company obtained a license effective September

2, 2007, from the New York State Department of Health to operate as a “Medicare Only”

health maintenance organization in the Bronx, Kings, New York, Orange, Queens, Richmond

and Westchester counties. Touchstone offered plans providing Medicare Advantage and

Medicare Advantage Part D prescription drug coverage and healthcare services to Medicare

beneficiaries through a network of medical services providers under Article 44 of the New

York Public Health Law.

Ancillary Estate:

Guarantee Insurance Company, a Florida domiciled workers’ compensation insurer, was

declared insolvent and placed into liquidation by the Second Judicial Circuit, Leon County,

Florida, on November 27, 2017. The Superintendent of Financial Services was appointed

Ancillary Receiver by order of the Supreme Court, New York County, on January 26, 2018. At

intake there were approximately 716 NY workers’ compensation claims outstanding. The

New York Workers’ Compensation Fund took over ongoing administration of the claims and

the estate was closed by order of the Court dated February 7, 2019.

8

2. Claims Closed

We closed 3,423 claims in 2018, a 17% increase over the 2,921 claims closed in 2017. The PMV Fund

closed 1,341 claims, the P/C Fund closed 1,048 claims and the WC Fund closed 883 claims. An

additional 151 non-fund claims against domestic estates were closed in 2018.

1,048

1,341

883

151

2,011

276

459

175

1,439

94

458

212

0

500

1,000

1,500

2,000

2,500

P/C Fund PMV Fund WC Fund Domestic Estatesincluding claims of Non-

NY Guaranty Funds

2018 2017 2016

Closed Claims For Years Ending December 31, 2018, 2017 and 2016

9

3. Claims Paid

In 2018, we paid a combined $191 million to creditors of domestic estates and Security Fund

claimants. These amounts included payments from the Security Funds on eligible and allowed

claims and distributions from the assets of domestic insurers in liquidation on allowed claims.

Distributions from domestic receiverships may represent less than the full amount of the claim

allowance due to the insolvency of the insurance companies in receivership. Of the $191 million in

payments in 2018, approximately $61 million was paid by the P/C Fund, approximately $18 million

was paid by the P/C Fund, and approximately $95 million was paid by WC Fund. In addition, $17

million was distributed from domestic receiverships to creditors, including the guaranty associations

of New York and other states, which paid claims on behalf of the domestic estates.

$61

$18

$95

$17

$25

$5

$72

$16

$50

$4

$76

$63

0

25

50

75

100

P/C Fund PMV Fund WC Fund Domestic Estates includingclaims of Non-NYGuaranty Funds

2018

2017

2016

Gross Disbursements (including Security Fund Payments

and Domestic Estates Distributions) For Years Ending December 31, 2018, 2017 and 2016

($ in millions)

10

4. Property/Casualty Insurance Security Fund

The P/C Fund is established under Insurance Law Article 76 for the purpose of paying eligible

property/casualty claims of insurance receiverships that remain unpaid due to insolvency up to a

statutory limit. The P/C Fund and the PMV Fund (below) may include an indemnity benefit and a

legal defense to the insured for any claims brought against the insured in connection with the claim.

The P/C Fund is not triggered to pay claims unless, among other things, the court establishes a

domestic receivership under Insurance Law Article 74 for New York domiciled insurers or an ancillary

receivership for non-New York domiciled insurers, and makes a finding of insolvency. All claims paid

by the P/C Fund must first be “allowed” (i.e. , approved) by the Court, except for claims under

$25,000, which may be allowed directly by the Superintendent. The P/C Fund covers the lines of

insurance specified in Article 76, which include medical malpractice, automobile liability and

damage, surety, multiple peril, homeowners, product liability, commercial automobile no-fault

automobile and excess coverage, including workers’ compensation excess. The P/C Fund closed

1,048 claims in 2018 and made payments of approximately $61 million.

5. Public Motor Vehicle Liability Security Fund

The PMV Fund is established under Insurance Law Article 76 for the purpose of securing the benefits

contemplated by Section 370 of the Vehicle and Traffic Law for injured parties and policyholders

under policies and surety bonds covering commercial vehicles for hire. The PMV Fund pays eligible

claims, up to a statutory limit, under insurance policies or surety bonds that are unpaid by reason of

the insurer’s insolvency or its inability to meet its insurance obligations, provided the insurer has

made payments to the PMV Fund as required under Article 76. The PMV Fund closed 1,341 claims

in 2018 and made payments of approximately $18 million.

6. Workers’ Compensation Fund

The WC Fund is established under Article 6-A of the Workers’ Compensation Law for the purpose of

providing benefits to injured workers whose employers are insured of insolvent carriers. The

Administrator settles or pays eligible claims in order to ensure there is no disruption in workers’

compensation benefits. The WC Fund is the largest component of our claims portfolio by dollar

value, with approximately $1 billion in claims reserves. In 2018, the WC Fund closed 883 workers’

compensation claims and paid workers’ compensation benefits (indemnity and medical) of

approximately $95 million.

In addition to paying claims, the Administrator seeks to reduce the WC Fund’s exposure by obtaining

settlements of benefits, controlling expenses, and pursuing recoveries from other sources, including

the Special Disability Fund.

11

7. Fraternal Benefit Societies

Fraternal benefit societies are organized under Article 45 of the Insurance Law and were primarily

established in the early part of the 20th Century to help their members finance end of life expenses.

When a society is placed into liquidation, the Receiver communicates with the members and winds-

up the organization’s affairs. At year-end 2018, there were 11 fraternals under management. The

number of fraternal receiverships has decreased in recent years from a high of 37 in 2012 to a low

of 10 in 2016. Four fraternal benefit societies were opened in 2018.

Open Fraternals at Year End (2009 – 2018)

32 3134

37

24

20 21

1013

11

0

10

20

30

40

50

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

12

Open Fraternal Benefit Societies – Year End 2018

The assets of fraternal benefit societies generally consist of investments, cash and undistributed

graves. The Receiver is responsible for issuing deeds for graves to members and other eligible

persons under the rules of the society, selling surplus graves and distributing any remaining assets

to the society’s members. In 2018, six fraternal benefit societies were closed and 1,223 graves were

distributed. The average time to close a fraternal society was 25 months.

Fraternal Benefit Societies Closed in 2018

Name

Date Opened

Amstel Benevolent Society, Inc. 07/17/2018

Berdichever Independent Benevolent Association 06/02/2017 Bronx Hungarian Sick & Benevolent Society, Inc. 08/01/2017

Bukowiner Bessarabian Benevolent Association 09/11/2017

Fedlo Association, Inc. 05/16/2017

First Bereg Munkaczer Sick and Benevolent Society 04/09/2015

Kudryncer Benevolent Society, Inc. 09/25/2018

Provident Sick and Benevolent Society, Inc. 10/23/2015

Sieniawer Young Men’s Sick Benevolent Association, Inc. 07/23/2018

Trembowler Benevolent Association, Inc. 08/15/2018

Yamonlinitzer Friends, Inc. 04/24/2017

Name

Date Opened

Date Closed

Number of Months Pending

Chivalry Relief Association, Inc. 05/01/2015 02/21/2018 33 months

Hochberg Family Circle, Inc. 04/27/2017 07/02/2018 14 months

Machnowka Aid Association 09/02/2015 04/25/2018 31 months

Metropole Association, Inc. 12/17/2014 09/12/2018 45 months

Ozorkower Benevolent Society, Inc. 05/08/2017 12/04/2018 18 months

Zolotonosher Friends, Inc. 09/07/2017 06/12/2018 09 months

13

8. Reinsurance

The Receiver is responsible for collecting reinsurance for distribution to creditors. The Receiver seeks recoveries from reinsurers for paid or allowed losses and for paid allocated loss adjustment expenses (“LAE”). The Receiver may also in appropriate cases enter into agreements with reinsurers to commute open balances. In 2018 and 2017 reinsurance collections totaled $11.6 million and $23.3 million, respectively. As we collect reinsurance, we reduce the pool of remaining collectible balances. For this reason, our overall collections have decreased in recent years.

9. Investment Income

The Receiver manages the financial assets of domestic receiverships with the primary objectives of

meeting the liquidity needs of each receivership and preserving capital. In addition, the Receiver

seeks to obtain a reasonable investment return and has engaged an investment manager

experienced in investing insurance company assets. We earned approximately $13.2 million in

investment income on assets under management in 2018 with a book yield of 2.29%. The overall

quality of the portfolio is highly rated at Aa2/AA by Moody’s and S&P.

10. Special Deposits Held By Other States

Certain domestic insurance companies post security deposits with the regulators of other states as

a condition of being licensed in that state. When the insurer is placed in liquidation, the deposits

are generally not released until the deposit state regulator determines that the insurer has satisfied

all liabilities covered by the deposit in that state. The Receiver worked with other state regulators

to recover $3.8 million in deposits in 2018, compared to $3.7 million in 2017.

Reinsurance Collections

Net Recovered in 2018 (in millions)

Net Recovered in 2017 (in millions)

Paid losses & paid LAE

collections

$ 7.9

$ 10.3

Unpaid losses and unpaid

LAE commutations

$ 3.7

$ 13.0

Total $ 11.6 $ 23.3

14

Goals

Goals for 2019

At the beginning of 2019, the Superintendent as Receiver and Administrator had approximately

14,865 open claims. The majority of claims are Security Fund eligible and are divided among the

P/C Fund (12%), PMV Fund (50%) and the WC Fund (38%). Posted reserves for all open claims are

approximately $1.9 billion, of which approximately $980 million or 51 percent is attributable to

workers’ compensation claims. Workers’ compensation claim reserves are reviewed annually to

verify the accuracy of the reserves.

Note 1: The PMV Fund’s open claims increased significantly in 2017, due to the intake of Fiduciary Insurance Company and CastlePoint National Insurance Company.

Note 2: The Domestic Claims column does not include claims counts for Health Republic Insurance of New York, Corp. As of year-

end 2018, Health Republic had issued approximately 190,000 EOBs, each of which included multiple claims for individual medical treatments.

1,812

7,472

5,294

151 136

5,188

7,390

4,679

250 145

4,713

123

4,532

445165

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

P/C Fund PMV Fund(Note 1)

WC Fund Domestic Claims(Note 2)

Non-New YorkGuaranty Funds

Total Open Claims

For Years Ending December 31, 2018, 2017 and 2016

15

Note 1: The Domestic Estates column (Non-Fund claims) include reserves for Health Republic Insurance of New York, Corp.

$290

$94

$980

$277 $236

$309

$78

$1,013

$252 $247

$81

$5

$973

$250 $274

0

200

400

600

800

1,000

1,200

P/C Fund PMV Fund WC Fund Domestic Estates(Non-Fund claims)

(Note 1)

Non-New YorkGuaranty Funds

2018

2017

2016

Total Class 2 (Policyholder) Reserves

For Years Ending December 31, 2018, 2017 and 2016 ($ in millions)

16

1. Closing Estates

Our goal is to close receiverships in an efficient manner, making allowance for long tail claims,

outstanding litigations, reinsurance collections and other requirements of the estate.

Realm Insurance Company Domestic 1Q 2019 (Closed)

Guarantee Insurance Company Ancillary 1Q 2019 (Closed)

Eagle Insurance Company Ancillary 4Q 2019

Group Council Mutual Insurance

Company of America

Domestic 4Q 2019

Professional Liability Company Domestic 4Q 2019

2. Resolution and Payment of Claims

Resolution and payment of claims is another measure of our performance. As noted on page 8, we

closed 3,423 claims in 2018.

The following chart indicates our performance in paying claims over the last 10 years. The payments

vary according to a number of factors, including the volume of open claims, the type of coverage

involved, the coverage limits of policies, and the difficulty of resolving complex or multi-party claims.

Total payments in 2018 were $191 million, consisting of both Security Fund payments and Domestic

Receivership distributions.

Name Type of Receivership Projecting or Actual Closing

17

Total Domestic Receivership and Security Fund Payments (2009 - 2018) ($ in Millions)

Security Fund payments reached a ten-year high in 2018, representing the increased number of Security Fund covered claims from estates taken in during the last two years -- Fiduciary Insurance Company of America (2017), CastlePoint National Insurance Company (2017) and Guarantee Insurance Company (2018). Distributions from domestic estates remained flat in 2018, reflecting the diminishing number of domestic estates under management. In addition, many of the larger estates under management are engaged in the federal waiver process, which inhibits our ability to make distributions without first identifying and resolving potential federal claims.

$10

$106

$85

$149

$183

$148

$126

$63

$16 $17

$155

$126 $119 $118 $114

$157 $155

$130

$102

$174

$-

$50

$100

$150

$200

$250

$300

$350

$400

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

DomesticDistribution

SecurityFundPayments

Financial Overview

Domestic

Receivership

18

Notes to Financial Overview

The following is a summary of financial information for each Domestic and Ancillary receivership. With respect to the financial information presented, we note the following:

All financial information contained in this report is unaudited. Copies of annual audited financial statements for each domestic receivership can be found on the NYLB website (www.nylb.org).

All financial statements have been prepared on the modified cash basis of accounting under which assets are reported on the financial statements at realizable value. For most receiverships, the single largest asset is cash and investments. Other assets include reinsurance recoverables, net of offsetting allowances for collectability. The liabilities are listed at undiscounted values and are subject to frequent updating as claims are reviewed and adjudicated during the course of the receivership.

The financial statements of the estates have been prepared under New York State Insurance Law Article 74. Estates that were licensed as Property/Casualty and Health Companies follow the priority scheme set forth in Section 7434 and estates that were licensed as Life Insurance Companies follow the priority scheme set forth in Section 7435.

Disbursements include all cash outlays including distributions to claimants and creditors, and payments of direct and indirect administrative expenses.

Article 74 of the New York Insurance Law provides that claims of a domestic estate in liquidation be paid in accordance with a priority scheme in which each member of a priority class must be paid in full before any distribution may be made to the next priority class. All members of a class receiving partial payment must receive the same pro-rata amount.

In cases where the assets of estates in receivership are not sufficient to pay claims below class two priority claims relating to claims under policies, the Receiver may choose not to evaluate claims in lower priority classes.

The financial information and statements contained in this report are subject to change as claims are evaluated and reinsurance recoverables are determined. The financial information contained in this report may not necessarily reflect the ultimate distribution that will be made in a given receivership.

The Claim Bar Date is generally the final date any claim can be submitted to the Receiver. Each Bar Date is implemented pursuant to a Court order which should be consulted in each case for more details.

Early Access Distributions are payments to a guaranty fund in connection with the guaranty fund’s claims against the domestic receivership. Early Access Distributions are made in advance of the final resolution of the guaranty fund’s claim and so are subject to a final accounting and reconciliation by the domestic receiver.

Under the Federal Priority Statute, 31 U.S.C. 3713, the Federal Government may assert rights of priority over certain other classes of creditors for its potential claims against a receivership. To address these claims, the Receiver may apply to the Federal Government for a waiver of its potential claims. This federal waiver request is generally submitted toward the end of a receivership as a precursor to closing the estate and making a final distribution.

19

Key Information

Notes

Date of Incorporation December 17, 1964 Date of Liquidation December 28, 2016 Presiding Judge Hon. John J. Kelley Claims Bar Date September 28, 2017 Projected Closing 2020 Distributions Paid to Date $ -0- Federal Waiver Requested No

American Medical and Life Insurance Company was licensed to carry out the business of insurance in 40 states and the District of Columbia. It wrote Life Insurance, Annuities and Accident and Health coverage.

American Medical and Life Insurance Company

20


Assets

As of December 31,

2018 2017

Unrestricted Assets:

Cash and Cash Equivalents $ 846,352 $ 996,191

Investments

Certificate of Deposits - -

Bonds, at fair market value 840,617 842,296

Common Stock, unaffiliated at fair market value - -

Total Investments 840,617 842,296

Total Cash, Cash Equivalents and Investments 1,686,969 1,838,487

Other Invested Assets

Investment in Subsidiaries - -

Real Estate - -

Buildings - -

Total Cash, Cash Equivalents, Investments and

Other Invested Assets 1,686,969 1,838,487

Reinsurance Recoverable on Paid Losses and LAE - -

Less: Allowance for Uncollectable Reinsurance Recoverables - -

Net Reinsurance Recoverables on Paid Losses and LAE - -

Reinsurance Recoverable on Unpaid Losses and LAE - -


Net Reinsurance Recoverables on Unpaid Losses and LAE - -

Receivables from Others - -

Accrued Investment Income 4,329 2,265

Other Assets 19,380 19,380

Total Unrestricted Assets 1,710,678 1,860,132

Restricted Assets:

Statutory Deposits 274,070 384,183

Other Restricted Assets - -

Total Restricted Assets 274,070 384,183

Total Assets $ 1,984,748 $ 2,244,315

21


Liabilities

As of December 31,

2018 2017

Secured Claims $ - $ -

Unsecured Liabilities:

Class I - Administrative Claims 13,701 11,441

Class II - Employee Claims 2,400 2,400

Class III - Vendor Claims 90 days prior to the date of liquidation - -

Class IV - Policy and Annuity Contract related Claims 19,612 19,612

Class V – Federal, State and Local Government Claims 319,069 319,610

Class VI - General Creditor Claims 3,803,949 3,803,949

Class VII – Surplus, Capital or Contribution Notes Claims - -

Class VIII – Shareholder Claims 5,000,000 5,000,000

Total Liabilities 9,158,731 9,157,012

Other Post-Employment Benefits Liability 71,637 39,522

(Deficit) Surplus of Assets over Liabilities (7,245,620) (6,952,219)

Total Liabilities and (Deficit) Surplus of Assets over

Liabilities $ 1,984,748 $ 2,244,315

Note: Liabilities are presented in order of the priority scheme set forth in New York Insurance Law Section 7435.

22


Receipts and Disbursements

For The Years Ended December 31,

2018 2017

Receipts:

Net Investment Income $ 12,293 $ 9,822

Reinsurance Recovered - -

Other Receipts 116,560 2,111,106

Total Receipts 128,853 2,120,928

Disbursements:

Distributions - -

Salaries & General Administrative Expenses 217,299 267,400

Professional Fees 38,478 21,775

Misc. 26,070 11,313

Total Disbursements $ 281,847 $ 300,488

23

Key Information

Notes

Date of Incorporation April 11, 1842 Date of Rehabilitation September 16, 2010 Date of Liquidation April 27, 2011 Presiding Judge Hon. Arlene P. Bluth Claims Bar Date December 15, 2013 Projected Closing 2022 Distributions Paid to Date $ 11,981,376 Federal Waiver Requested No

Atlantic Mutual Insurance Company wrote workers’ compensation, surety, auto, property damage, aviation and maritime coverage.

Atlantic Mutual Insurance Company

24


Assets

As of December 31,

2018 2017


Cash and Cash Equivalents $ 559,242 $ 2,506,797

Investments


Bonds, at fair market value 76,013,064 77,248,939

Common Stock, unaffiliated at fair market value - 120,508

Total Investments 76,013,064 77,369,447



Investment in Subsidiaries 388,865 544,446

Real Estate - -

Buildings - -



Reinsurance Recoverable on Paid Losses and LAE 15,564,147 14,128,046

Less: Allowance for Uncollectable Reinsurance Recoverables (13,255,498) (11,891,518)

Net Reinsurance Recoverables on Paid Losses and LAE 2,308,649 2,236,528

Reinsurance Recoverable on Unpaid Losses and LAE 18,783,231 19,361,553


Net Reinsurance Recoverables on Unpaid Losses and LAE 3,391,837 3,488,264

Receivables from Others 613 613


Other Assets 1,194,676 1,171,885


Restricted Assets:

Statutory Deposits 6,755,656 6,724,502

Other Restricted Assets 15,214,157 15,109,334

Total Restricted Assets 21,969,813 21,833,836

Total Assets $ 106,166,064 $ 109,528,321

25


Liabilities

As of December 31,

2018 2017

Secured Claims $ 3,650,084 $ 3,696,695


Class II - Claims and Related Costs

Allowed 66,072,621 62,306,035

Non-Allowed 182,361,339 185,033,188

Total Class II - Claims and Related Costs 248,433,960 247,339,223

Class III - Federal Government Claims 39,418,405 39,418,405

Class IV - Employee Claims - -

Class V - State and Local Government Claims 3,698,287 3,698,287


Class VII - Late Filed Claims 10,000 -

Class VIII - Section 1307 (Shareholder) Loans 159,398,946 159,398,946

Class IX - Shareholder Claims - -


Other Post-Employment Benefits Liability 2,897,905 2,720,549



Liabilities $ 106,166,064 $ 109,528,321

26




2018 2017

Receipts:

Net Investment Income $ 1,309,920 $ 1,102,373

Reinsurance Recovered 168,528 9,482,770


Total Receipts 2,413,572 12,807,010

Disbursements:

Distributions 3,236,233 1,986,719

Salaries & General Administrative Expenses 2,168,191 2,815,409


Misc. 165,754 168,202

Total Disbursements $ 5,657,167 $ 5,077,184

27

Key Information

Notes

Date of Incorporation September 5, 1941 Date of Rehabilitation September 16, 2010 Date of Liquidation April 27, 2011 Presiding Judge Hon. Arlene P. Bluth Claims Bar Date December 15, 2013 Projected Closing 2022 Distributions Paid to Date $ 1,448,122 Federal Waiver Requested No

Centennial Insurance Company wrote commercial and general liability insurance, including workers’ compensation, surety, auto, property damage, aviation and maritime coverage.

Centennial Insurance Company

28


Assets

As of December 31,

2018 2017



Investments



Common Stock, unaffiliated at fair market value - 42,903





Real Estate - -

Buildings - -





Net Reinsurance Recoverables on Paid Losses and LAE 867,016 738,435




Receivables from Others 206 206


Other Assets 608,310 608,310


Restricted Assets:




Total Assets $ 48,128,519 $ 48,169,421

29


Liabilities

As of December 31,

2018 2017

Secured Claims $ 1,089,481 $ 1,087,931



Allowed 54,321,923 47,141,212

Non-Allowed 107,117,004 121,546,613






Class VII - Late Filed Claims 500,000 500,000

Class VIII - Section 1307 (Shareholder) Loans - -






Liabilities $ 48,128,519 $ 48,169,421

30




2018 2017

Receipts:



Other Receipts 2,798,090 1,091,576

Total Receipts 4,279,163 3,933,767

Disbursements:

Distributions - -



Misc. 101,348 95,901


31

Key Information

Notes

Cuatro, LLC

Date of Incorporation March 23, 2009 Date of Liquidation August 6, 2018 Presiding Judge Hon. Debra A. James Claims Bar Date January 4, 2019 Projected Closing 2021 Distributions Paid to Date $ -0- Federal Waiver Requested No

Cuatro, LLC obtained a Certificate of Authority to operate as a “Medicare Only” health maintenance organization providing Medicare Advantage Part D prescription drug coverage (“MA-PD Coverage) to Medicare beneficiaries through a network of hospital and health care providers.

32

Cuatro, LLC

Assets

As of December 31,

2018


Cash and Cash Equivalents $ 500,057

Investments

Certificate of Deposits -

Bonds, at fair market value 2,504,053

Common Stock, unaffiliated at fair market value -

Total Investments 2,504,053

Total Cash, Cash Equivalents and Investments 3,004,110


Investment in Subsidiaries -

Real Estate -

Buildings -


Other Invested Assets 3,004,110

Reinsurance Recoverable on Paid Losses and LAE -

Less: Allowance for Uncollectable Reinsurance Recoverables -

Net Reinsurance Recoverables on Paid Losses and LAE -

Reinsurance Recoverable on Unpaid Losses and LAE -


Net Reinsurance Recoverables on Unpaid Losses and LAE -

Receivables from Others -

Accrued Investment Income 13,114

Other Assets 2,214,607

Total Unrestricted Assets 5,231,831

Restricted Assets:

Statutory Deposits -

Other Restricted Assets 25,357

Total Restricted Assets 25,357

Total Assets $ 5,257,188

33

Cuatro, LLC

Liabilities

As of December 31,

2018

Secured Claims $ 25,357

Class I - Administrative Claims 29,692


Allowed -

Non-Allowed 10,452,908

Total Class II - Claims and Related Costs 10,452,908

Class III - Federal Government Claims 132,393

Class IV - Employee Claims -

Class V - State and Local Government Claims -

Class VI - General Creditor Claims 2,797,767

Class VII - Late Filed Claims -

Class VIII - Section 1307 (Shareholder) Loans -

Class IX - Shareholder Claims -

Total Liabilities 13,438,117

Other Post-Employment Benefits Liability 16,300

(Deficit) Surplus of Assets over Liabilities (8,197,229)


Liabilities $ 5,257,188

34

Cuatro, LLC



2018

Receipts:

Net Investment Income $ 7,812

Reinsurance Recovered -

Other Receipts 2,092

Total Receipts 9,904

Disbursements:

Distributions -

Salaries & General Administrative Expenses 113,163

Professional Fees 31,686

Misc. 15,954

Total Disbursements $ 160,803

35

Key Information

Notes

Eveready Insurance Company

Date of Incorporation August 8, 1963 Date of Liquidation January 29, 2015 Presiding Judge Hon. Nancy M. Bannon Claims Bar Date January 29, 2016 Projected Closing 2020 Distributions Paid to Date $ -0- Federal Waiver Requested No

Eveready Insurance Company wrote automobile coverage exclusively in New York.

36


Assets

As of December 31,

2018 2017



Investments


Bonds, at fair market value 317,056 320,590


Total Investments 317,056 320,590

Total Cash, Cash Equivalents and Investments 531,254 564,349



Real Estate - -

Buildings - -


Other Invested Assets 531,254 564,349








Accrued Investment Income - -

Other Assets - -

Total Unrestricted Assets 531,254 564,349

Restricted Assets:

Statutory Deposits - -


Total Restricted Assets - -

Total Assets $ 531,254 $ 564,349

37


Liabilities

As of December 31,

2018 2017




Allowed 13,120,622 15,904,817

Non-Allowed 10,482,353 8,869,273


Class III - Federal Government Claims 5,857 5,857


Class V - State and Local Government Claims 573,094 573,094

Class VI - General Creditor Claims 955,681 955,681

Class VII - Late Filed Claims - -







Liabilities $ 531,254 $ 564,349

38




2018 2017

Receipts:



Other Receipts 34,636 49,391

Total Receipts 43,100 57,705

Disbursements:

Distributions - -



Misc. 293 293


39

Key Information

Notes

Executive Life Insurance Company of New York

Date of Incorporation August 8, 1963 Date of Rehabilitation April 23, 1991 Date of Liquidation August 8, 2013 Presiding Judge Hon. John M. Galasso Claims Bar Date N/A

Executive Life Insurance Company of New York (“ELNY”) was licensed to write various lines of life insurance and annuities, including traditional life policies, single premium deferred annuities, single premium immediate annuities and closeout qualified retirement accounts. A petition to place ELNY into rehabilitation was granted by the New York Supreme Court on April 23, 1991, and the Superintendent of Insurance (now Superintendent of Financial Services) was appointed Receiver. On April 16, 2012, the Court approved the liquidation of ELNY and an Agreement of Restructuring (“Agreement”) negotiated by the Receiver, the National Organization of Life and Health Guaranty Associations (“NOLHGA”), the New York Life Insurance Guaranty Corporation, and other participating parties. The Agreement provided for a transfer of ELNY’s policy and annuity obligations and substantially all of its assets to Guaranty Association Benefits Company (“GABC”), a District of Columbia not-for-profit captive insurance corporation. The liquidation order and the terms of the Agreement became effective on August 8, 2013. Since that date, GABC has continued to pay ELNY’s policy and annuity obligations in accordance with the Agreement and the ELNY liquidation proceeding has remained open. The proceeding is not expected to close until all of ELNY’s obligations have been run off by GABC, and excess funds, if any, have been returned to the estate for distribution under the terms of the Agreement.

40


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -









Receivables from Central Disbursement Account 650,000 650,000


Other Assets - -


Restricted Assets:


Segregated Contingency Fund 7,915,066 7,831,209


Total Assets $ 28,159,015 $ 27,587,518

41


Liabilities

As of December 31,

2018 2017

Secured Claims $ 7,915,066 $ 7,831,209

Unsecured Liabilities:


Class II - Employee Claims - -

Class III - Vendor Claims 90 days prior to the date of liquidation - -

Class IV - Policy and Annuity Contract related Claims 1,004,972,778 1,004,972,777

Class V - Federal, State and Local Government Claims - -


Class VII - Surplus, Capital or Contribution Notes Claims - -

Class VIII - Shareholder Claims - -

Total Liabilities 1,016,778,116 1,016,692,673




Liabilities $ 28,159,015 $ 27,587,518

Note: Liabilities are presented in order of the priority scheme set forth in New York Insurance Law Section 7435.

42




2018 2017

Receipts:




Disbursements:

Annuity Benefits - 185,923



Misc. 20,068 19,974


43

Key Information

Notes

Fiduciary Insurance Company of America

Date of Incorporation October 24, 1977 Date of Liquidation July 25, 2017 Presiding Judge Hon. Leslie J. Purificacion Claims Bar Date September 24, 2018 Projected Closing 2022 Distributions Paid to Date $ -0- Federal Waiver Requested No

Fiduciary Insurance Company wrote commercial automobile insurance exclusively in New York.

44


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -





Net Reinsurance Recoverables on Paid Losses and LAE 13,311 -



Net Reinsurance Recoverables on Unpaid Losses and LAE 474,979 -



Other Assets 609,488 843,282


Restricted Assets:




Total Assets $ 35,603,021 $ 36,811,888

45


Liabilities

As of December 31,

2018 2017




Allowed 4,244,240 561,023

Non-Allowed 158,989,903 109,098,373


Class III - Federal Government Claims - -

Class IV - Employee Claims 1,200 1,200

Class V - State and Local Government Claims 1,832,190 -



Class VIII - Section 1307 (Shareholder) Loans 992,197 992,197






Liabilities $ 35,603,021 $ 36,811,888

46




2018 2017

Receipts:




Total Receipts 1,491,898 1,722,149

Disbursements:

Distributions - -



Misc. 84,017 15,029


47

Key Information

Notes

First Central Insurance Company

Date of Incorporation November 30, 1978 Date of Rehabilitation January 28, 1998 Date of Liquidation April 27, 1998 Presiding Judge Hon. R. Bruce Cozzens, Jr. Claims Bar Date April 30, 2013 Distributions Paid to Date $ 205,621,706 Federal Waiver Requested No

First Central was licensed to write general and commercial liability insurance including fire, property, auto, commercial multi-peril and other personal lines of business. First Central also offered specialty programs, including directors’ and officers’ liability insurance for cooperatives and condominiums and alternative business owners’ policies. First Central will remain open until all receivables on reinsurance billings have been collected from the company’s reinsurers.

48


Assets

As of December 31,

2018 2017


Cash and Cash Equivalents $ 2,123,401 $ 1,795,910

Investments


Bonds, at fair market value - -


Total Investments - -




Real Estate - -

Buildings - -



Reinsurance Recoverable on Paid Losses and LAE 37,427 150,082








Other Assets - -


Restricted Assets:


Other Restricted Assets - 7,740

Total Restricted Assets - 7,740

Total Assets $ 7,445,649 $ 8,408,626

49


Liabilities

As of December 31,

2018 2017

Secured Claims $ - $ 7,740



Allowed 78,780,220 78,780,220

Non-Allowed - -










Other Post-Employment Benefits Liability - -



Liabilities $ 7,445,649 $ 8,408,626

50




2018 2017

Receipts:

Net Investment Income $ 1,032 $ 735


Other Receipts 53,492 255

Total Receipts 499,652 1,171,670

Disbursements:

Distributions - -



Misc. 3,728 5,358


51

Key Information

Notes

Frontier Insurance Company

Date of Incorporation November 2, 1962 Date of Rehabilitation October 15, 2001 Date of Liquidation November 16, 2012 Presiding Judge Hon. Richard M. Platkin Claims Bar Date December 31, 2013 Projected Closing 2021 Distributions Paid to Date $ -0- Federal Waiver Requested Yes

Frontier Insurance Company was authorized to write all lines of business typical of a property and casualty insurance carrier, including workers’ compensation, surety, and medical malpractice.

52

Frontier Insurance Company Assets

As of December 31,

2018 2017



Investments





Limited Partnerships - -

Real Estate - 386,220

Buildings - 3,213,780








Net Reinsurance Recoverables on Unpaid Losses and LAE 44,303 58,431


Other Assets 130,325 221,304


Restricted Assets




Total Assets $ 36,165,596 $ 46,908,001

53


Liabilities

As of December 31,

2018 2017

Secured Claims $ 1,712,215 $ 1,717,187

Class I - Administrative Claims 1,178,247 1,052,231


Allowed 146,727,222 133,470,274

Non-Allowed 54,547,849 78,647,014








Class IX - Shareholder Claims 10,584 10,584





Liabilities $ 36,165,596 $ 46,908,001

54




2018 2017

Receipts:




Total Receipts 1,557,504 3,420,428

Disbursements:

Distributions - -



Misc. 841,444 775,529


55

Key Information

Notes

Group Council Mutual Insurance Company

Date of Incorporation November 23, 1976 Date of Liquidation March 19, 2002 Presiding Judge Hon. Arlene P. Bluth Claims Bar Date August 31, 2013 Projected Closing 2019 Distributions Paid to Date $ -0- Federal Waiver Requested No

Group Council Mutual Insurance Company was a mutual property and casualty insurer that specialized in writing medical malpractice insurance. Underwriting practices were confined to medical professional liability for physicians and surgeons affiliated with the Health Insurance Plan of Greater New York.

56


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -









Receivables from Others 100,000 100,000

Accrued Investment Income 4,362 783

Other Assets - -


Restricted Assets




Total Assets $ 1,652,850 $ 1,691,815

57


Liabilities

As of December 31,

2018 2017




Allowed 242,617,258 242,553,286

Non-Allowed 6,981,136 11,450,077













Liabilities $ 1,652,850 $ 1,691,815

58




2018 2017

Receipts:



Other Receipts - -


Disbursements:

Distributions - -



Misc. 3,224 3,719


59

Key Information

Notes

Health Republic Insurance of New York, Corp.

Date of Incorporation October 4, 2011 Date of Liquidation May 11, 2016 Presiding Judge Hon. Carol A. Edmead Claims Bar Date N/A Projected Closing 2021 Distributions Paid to Date $ -0- Federal Waiver Requested Partial waiver requested

Health Republic Insurance of New York, Corp. (“HRINY”) was incorporated in the State of New York as a Federal Consumer Operated and Oriented Plan under the Patient Protection and Affordable Care Act on October 13, 2011, under the name of the Freelancers Health Services Corporation. The company changed its name to Health Republic Insurance of New York Corp. on October 10, 2014. HRINY was licensed as a not-for-profit corporation under the provisions of Article 43 of the New York Insurance Law.

60


Assets

As of December 31,

2018 2017



Investments






Other Assets

Amount Recoverable from Federal Reinsurance 51,736,710 51,736,710

Less: Reserve for Recoverable from Federal Reinsurance (51,736,710) (51,736,710)

Net Amount Recoverable from Federal Reinsurance - -

Accrued Retrospective Premium Receivable - Risk Corridors 445,134,282 445,134,282

Less: Reserve for Retrospective Premium Receivable (445,134,282) (445,134,282)

Net Accrued Retrospective Premium Receivable - -

Health Care Receivable 83,495 83,495

Prepaid Expenses 1,347 362,266

Other Receivables 389,750 673,710

Accrued Interest Income Receivable 179,024 126,463


Other Assets 37,658,015 38,836,123

Total Assets $ 37,658,015 $ 38,836,124

61


Liabilities

As of December 31,

2018 2017

Unsecured Claims

Class I - Administrative Claims $ 179,376 $ 703,721


Allowed - -

Non-Allowed 217,950,494 213,780,023







Class VIII - Section 1307 (Shareholder) Loans 264,966,400 264,966,400





Total Liabilities and Deficit of Assets

over Liabilities $ 37,658,015 $ 38,836,124

62




2018 2017

Receipts:




Total Receipts 1,127,264 1,291,641

Disbursements:

Distributions - -

Return Premiums Paid - 2,719

Loss Adjustment Expenses 353,576 -


Professional Fees 599,480 2,752,946

Misc. 53,565 234,839


63

Key Information

Notes

Ideal Mutual Insurance Company

Date of Incorporation November 17, 1944 Date of Rehabilitation December 26, 1984 Date of Liquidation February 7, 1985 Presiding Judge Hon. David B. Cohen Claims Bar Date December 31, 2003 Projected Closing 2021 Distributions Paid to Date $ 188,129,912 Federal Waiver Requested Yes

Ideal Mutual Insurance Company was licensed to write workers’ compensation insurance, general and commercial liability insurance including fire, property, auto, commercial multi-peril and other personal lines of business.

64


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -











Other Assets - -


Restricted Assets




Total Assets $ 51,349,922 $ 52,282,901

65


Liabilities

As of December 31,

2018 2017

Secured Claims $ 2,422,695 $ 2,846,166

Class I - Administrative Claims 1,345,756 907,299


Allowed 262,343,195 260,478,535

Non-Allowed 27,256,603 24,651,095






Class VII - Late Filed Claims 70,902,912 70,962,026







Liabilities $ 51,349,922 $ 52,282,901

66




2018 2017

Receipts:


Reinsurance Recovered 589,905 311,218

Other Receipts - -

Total Receipts 1,484,100 797,377

Disbursements:

Distributions 754,170 615,962

Salaries & General Administrative Expenses 975,538 1,091,925


Misc. 76,832 75,274


67

Key Information

Notes

Midland Insurance Company

Date of Incorporation December 31, 1959 Date of Liquidation April 3, 1986 Presiding Judge Hon. Barbara Jaffe Claims Bar Date January 31, 2012 Projected Closing 2022 Distributions Paid to Date $ 406,595,570 Federal Waiver Requested Yes

Midland Insurance Company wrote general and commercial liability insurance, including fire, property, auto, commercial multi-peril and other personal lines of business. Midland also wrote a substantial amount of excess coverage for major Fortune 500 companies and was a reinsurer.

68


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -









Receivables from Others 3,000,000 3,260,000

Accrued Investment Income 1,579,969 1,399,067

Other Assets - -


Restricted Assets




Total Assets $ 368,899,729 $ 366,387,806

69


Liabilities

As of December 31,

2018 2017

Secured Claims $ 1,008,987 $ 1,480,524

Class I - Administrative Claims 3,532,920 2,405,741


Allowed 1,269,013,460 1,260,750,898

Non-Allowed 125,372,593 129,220,490

Total Class II - Claims and Related Costs 1,394,386,053 1,389,971,388








Total Liabilities 1,695,433,336 1,751,466,488


(Deficit) Surplus of Assets over Liabilities (1,342,899,850) (1,402,421,559)


Liabilities $ 368,899,729 $ 366,387,806

70




2018 2017

Receipts:

Net Investment Income $ 6,562,882 $ 4,635,757

Reinsurance Recovered 2,491,099 5,258,024

Other Receipts 2,205 -

Total Receipts 9,056,186 9,893,781

Disbursements:

Distributions 2,631,183 5,009,762

Loss Adjustment Expense 21,248 81,480



Misc. 418,766 408,445


71

Key Information

Notes

Professional Liability Insurance Company of America

Date of Incorporation March 6, 1958 Date of Rehabilitation April 30, 2010 Date of Liquidation February 10, 2014 Presiding Judge Hon. Lisa A. Sokoloff Claims Bar Date June 30, 2017 Projected Closing 2019 Distributions Paid to Date $ 2,041,195 Federal Waiver Requested Yes

Professional Liability Insurance Company of America wrote medical malpractice insurance in Connecticut, Illinois, Maryland, Missouri and Texas.

72


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -











Other Assets - -


Restricted Assets

Statutory Deposits - 1,252,776


Total Restricted Assets - 1,252,776

Total Assets $ 15,681,052 $ 17,167,038

73


Liabilities

As of December 31,

2018 2017




Allowed 200,001 1,266,045

Non-Allowed 1,180,432 1,144,121








Class IX - Shareholder Claims 12,998,356 13,373,891


Other Post-Benefits Benefits Liability 1,063,071 1,017,070

(Deficit) Surplus of Assets over Liabilities - -


Liabilities $ 15,681,052 $ 17,167,038

74




2018 2017

Receipts:



Other Receipts 1,275,772 541


Disbursements:

Distributions 1,631,441 -



Misc. 18,217 19,321

Total Disbursements $ 1,784,009 $ 150,483

75

Key Information

Notes

Realm National Insurance Company

Date of Incorporation March 12, 1892 Date of Liquidation June 15, 2005 Presiding Judge Hon. Lynn R. Kotler Claims Bar Date January 31, 2014 Date Closed January 23, 2019 Distributions Paid to Date $ 17,009,843 Federal Waiver Requested No

Realm was licensed to write workers’ compensation and general and commercial liability insurance, including fire, property, auto, commercial multi-peril and personal lines of business.

76


Assets

As of December 31,

2018 2017



Investments


Bonds, at fair market value - -


Total Investments - -

Total Cash, Cash Equivalents and Investments 544,919 413,103



Real Estate - -

Buildings - -


Other Invested Assets 544,919 413,103




Reinsurance Recoverable on Unpaid Losses and LAE 155,997 155,997

Less: Allowance for Uncollectable Reinsurance Recoverables (155,997) (155,997)




Other Assets 160,956 160,956

Total Unrestricted Assets 705,875 574,059

Restricted Assets

Statutory Deposits - 205,000


Total Restricted Assets - 205,000

Total Assets $ 705,875 $ 779,059

77


Liabilities

As of December 31,

2018 2017




Allowed 85,546,808 85,654,912

Non-Allowed - -






Class VII - Late Filed Claims 401 401




Other Post-Employment Benefits Liability - -



Liabilities $ 705,875 $ 779,059

78




2018 2017

Receipts:


Reinsurance Recovered 228,180 55,500



Disbursements:

Distributions - 1,693,617

Salaries & General Administrative Expenses 157,612 1,847,769


Misc. 6,866 10,018

Total Disbursements $ 195,366 $ 3,588,074

79

Key Information

Notes

The Insurance Corporation of New York

Date of Incorporation July 11, 1968 Date of Rehabilitation June 30, 2009 Date of Liquidation March 10, 2010 Presiding Judge Hon. Arlene P. Bluth Claims Bar Date December 31, 2012 Projected Closing 2021 Distributions Paid to Date $ 18,610,627 Federal Waiver Requested No

The Insurance Corporation of New York was authorized to write Property/Casualty lines of business and workers’ compensation.

80


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -





Net Reinsurance Recoverables on Paid Losses and LAE 1,366,460 1,818,989

Reinsurance Recoverable on Unpaid Losses and LAE 119,572 1,703,686

Less: Allowance for Uncollectable Reinsurance Recoverables (109,990) (1,583,533)




Other Assets 464,000 464,000


Restricted Assets

Statutory Deposits 103,415 231,290



Total Assets $ 19,225,229 $ 27,783,797

81


Liabilities

As of December 31,

2018 2017

Secured Claims $ 688,991 $ 1,348,853



Allowed 12,912,418 20,787,651

Non-Allowed 4,384,773 6,460,267








Class IX - Shareholder Claims 107,467,599 107,467,599





Liabilities $ 19,225,229 $ 27,783,797

82




2018 2017

Receipts:


Reinsurance Recovered 2,686,030 2,580,260

Other Receipts 131,288 172

Total Receipts 3,126,196 2,812,242

Disbursements:

Distributions 9,172,749 424,938



Misc. 61,960 55,304


83

Key Information

Notes

Touchstone Health HMO, Inc.

Date of Incorporation May 30, 2006 Date of Liquidation May 11, 2018 Presiding Judge Hon. William J. Giacomo Claims Bar Date November 13, 2018 Projected Closing 2021 Distributions Paid to Date $ -0- Federal Waiver Requested No

Touchstone Health HMO, Inc. (“Touchstone”) was incorporated in 2006, and operated as a “Medicare Only” health maintenance organization in the counties of Bronx, Kings, New York, Orange, Queens, Richmond and Westchester. Touchstone offered plans providing Medicare Advantage and Medicare Advantage Part D prescription drug coverage and healthcare services to Medicare beneficiaries through a network of medical services providers pursuant to Article 44 of the New York Public Health Law.

84


Assets

As of December 31,

2018


Cash and Cash Equivalents $ 484,934

Investments

Certificate of Deposits -

Bonds, at fair market value 6,210,484

Common Stock, unaffiliated at fair market value -

Total Investments 6,210,484

Total Cash, Cash Equivalents and Investments 6,695,418


Investment in Subsidiaries -

Real Estate -

Buildings -


Other Invested Assets 6,695,418

Reinsurance Recoverable on Paid Losses and LAE -


Net Reinsurance Recoverables on Paid Losses and LAE -

Reinsurance Recoverable on Unpaid Losses and LAE -


Net Reinsurance Recoverables on Unpaid Losses and LAE -

Receivables from Others -

Accrued Investment Income 8,420

Other Assets -

Total Unrestricted Assets 6,703,838

Restricted Assets

Statutory Deposits -

Other Restricted Assets -

Total Restricted Assets -

Total Assets $ 6,703,838

85


Liabilities

As of December 31,

2018

Secured Claims $ -

Class I - Administrative Claims 51,733


Allowed -

Non-Allowed 10,284,608

Total Class II - Claims and Related Costs 10,284,608

Class III - Federal Government Claims -

Class IV - Employee Claims -

Class V - State and Local Government Claims 9,190

Class VI - General Creditor Claims 7,160,723

Class VII - Late Filed Claims -

Class VIII - Section 1307 (Shareholder) Loans 10,639,750

Class IX - Shareholder Claims 54,653,626

Total Liabilities 82,799,630

Other Post-Employment Benefits Liability 36,935

(Deficit) Surplus of Assets over Liabilities (76,132,727)


Liabilities $ 6,703,838

86




2018

Receipts:

Net Investment Income $ 58,359

Reinsurance Recovered -

Other Receipts 166

Total Receipts 58,525

Disbursements:

Distributions -

Salaries & General Administrative Expenses 347,786

Professional Fees 26,118

Misc. 29,044

Total Disbursements $ 402,948

87

Key Information

Notes

Union Indemnity Insurance Company

Date of Incorporation October 20, 1975 Date of Liquidation July 16, 1985 Presiding Judge Hon. Barbara Jaffe Claims Bar Date July 19, 2010 Projected Closing 2020 Distributions Paid to Date $ 82,991,233 Federal Waiver Requested Yes

Union was licensed to write workers’ compensation and general and commercial liability insurance, including fire, property, auto, surety, commercial multi-peril and mass tort/long-tail coverage for asbestos, environmental and product liability policies.

88


Assets

As of December 31,

2018 2017



Investments








Real Estate - -

Buildings - -






Reinsurance Recoverable on Unpaid Losses and LAE - 1,117,885

Less: Allowance for Uncollectable Reinsurance Recoverables - (1,117,885)




Other Assets - -


Restricted Assets




Total Assets $ 26,478,934 $ 25,859,981

89


Liabilities

As of December 31,

2018 2017

Secured Claims $ 3,819,284 $ 6,342,284



Allowed 177,354,226 177,346,778

Non-Allowed 352,445 136,075


Class III - Federal Government Claims 137,245 137,245











Liabilities $ 26,478,934 $ 25,859,981

90




2018 2017

Receipts:


Reinsurance Recovered 3,723,360 4,019

Other Receipts - -


Disbursements:

Distributions 3,586 9,217



Misc. 31,323 29,594


Financial Overview

Ancillary Receiverships

91

Ancillary Receiverships-

American Manufacturers Mutual Insurance Company

American Motorists Insurance Company

CastlePoint National Insurance Company

Eagle Insurance Company

Guarantee Insurance Company

Lincoln General Insurance Company

Lumbermens Mutual Casualty Insurance Company

Reliance Insurance Company

The Home Insurance Company

Ullico Casualty Company

92

Key Information

Total Claim and Expense Drawdowns Reserves and Receipts/Recoveries as of December 31, 2018

Category

2018

Inception To Date

Claims Paid

$ 4,243,023

$ 24,962,840

LAE Paid 189,290 1,789,216 Administrative Expenses Paid 625,467 4,846,753

Total $ 5,057,780 $ 31,598,809

Open Reserves $ 79,823,684 $ 79,823,684 Receipts/Recoveries $ 4,255,104 $ 12,709,843

Domiciled State

Date of Rehabilitation

Date of Liquidation

Date of Ancillary Receivership

Ancillary Judge

Funds Triggered

Projected Closing

Illinois

July 12, 2012

May 10, 2013

June 19, 2013

Hon. Manuel J. Mendez

P/C, PMV and WC Funds

2021

American Manufacturers Mutual Insurance Company

93

Key Information


Category

2018

Inception To Date

Claims Paid

$ 10,013,795

$ 63,631,658


Total $ 11,389,172 $ 74,387,183


Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

Illinois

August 16, 2012

May 10, 2013

May 30, 2013



2021

American Motorists Insurance Company

94

Key Information


Category

2018

Inception To Date

Claims Paid

$ 30,408,650

$ 35,047,445

LAE Paid 4,015,853 4,313,195 Administrative Expenses Paid 4,675,549 6,911,868

Total $ 39,100,052 $ 46,272,508


Domiciled State

Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

California

April 1, 2017

June 26, 2017

Hon. Jennifer G. Schecter

P/C and WC Funds

2023

CastlePoint National Insurance Company

95

Key Information


Category

2018

Inception To Date

Claims Paid

$ 14,000

$ 8,259,658


Total $ 191,287 $ 21,381,400

Open Reserves $ 395,683 $ 395,683 Receipts/Recoveries $ -0- $ -0-

Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

New Jersey

January 29, 2007

August 9, 2007

February 27, 2009

Hon. Eileen A. Rakower

P/C and PMV Funds

2019

Eagle Insurance Company

96

Key Information


Category

2018

Inception To Date

Claims Paid

$ 15,366,783

$ 15,366,783

LAE Paid 2,482,020 2,482,020 Administrative Expenses Paid 972,161 972,161

Total $ 18,820,964 $ 18,820,964

Open Reserves $ 63,217,559 $ 63,217,559 Receipts/Recoveries $ 532,390 $ 532,390

Domiciled State

Date of Liquidation


Ancillary Judge

Funds Triggered

Date Closed

Florida

November 27, 2017

January 26, 2018

Hon. Paul A. Goetz

WC Fund

February 7, 2019

Guarantee Insurance Company

97

Key Information


Category

2018

Inception To Date

Claims Paid

$ 567,816

$ 4,172,380

LAE Paid 87,662 210,174 Administrative Expenses Paid 595,983 4,589,759

Total $ 1,251,461 $ 8,972,313

Open Reserves $ 9,244,847 $ 9,244,847 Receipts/Recoveries $ -0- $ -0-

Domiciled State

Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

Pennsylvania

November 5, 2015

January 26, 2016

Hon. James D’Auguste

P/C and PMV Funds

2020

Lincoln General Insurance Company

98

Key Information


Category

2018

Inception To Date

Claims Paid

$ 6,306,170

$ 41,480,129

LAE Paid 276,576 3,504,036 Administrative Expenses Paid 1,088,790 8,138,730

Total $ 7,671,536 $ 53,122,895


Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

Illinois

July 2, 2012

May 10, 2013

June 19, 2013



2021

Lumbermens Mutual Casualty Insurance Company

99

Key Information


Category

2018

Inception To Date

Claims Paid

$ 13,217,824

$ 599,495,605

LAE Paid 866,453 65,604,857 Administrative Expenses Paid 1,984,759 90,294,385

Total $ 16,069,036 $ 755,394,847


Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

Pennsylvania

May 29, 2001

October 3, 2001

December 14, 2001

Hon. Lisa A. Sokoloff


2020

Reliance Insurance Company

100

Key Information


Category

2018

Inception To Date

Claims Paid

$ 3,477,107

$ 118,070,891


Total $ 4,300,960 $ 141,495,420


Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

New Hampshire

March 5, 2003

June 13, 2003

September 24, 2003

Hon. Nancy M. Bannon

P/C and WC Funds

2020

The Home Insurance Company

101

Key Information


Category

2018

Inception To Date

Claims Paid

$ 4,894,456

$ 52,062,753


Total $ 5,884,700 $ 68,616,188


Domiciled State


Date of Liquidation


Ancillary Judge

Funds Triggered

Projected Closing

Delaware

March 11, 2013

May 30, 2013

July 8, 2013



2020

Ullico Casualty Company

Documents

NEW YORK LIQUIDATION BUREAU - NYLB · The New York Liquidation Bureau serves as the staff of the Superintendent in her capacities as Receiver and Administrator under New York Insurance